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Evaluate the marginal cost of expanding ExxonMobils oil refining capacity. Cost Components Fixed Costs ($) Variable Costs per Unit ($) Production Volume (units) Oil Refining

Evaluate the marginal cost of expanding ExxonMobil’s oil refining capacity.

Cost Components

Fixed Costs ($)

Variable Costs per Unit ($)

Production Volume (units)

Oil Refining Capacity

3,500,000,000

1

1,000,000,000

Requirements:

Calculate the marginal cost per unit.

Determine the break-even point for the oil refining capacity expansion.

Analyze the impact of production volume changes on the marginal cost.

Provide recommendations for cost management in oil refining. 

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